When logging in with LinkedIn, you will briefly leave the Delaware Investments website. Delaware Investments is not responsible for the login page you are about to visit. Your browser will automatically return you to our site.

Reaction to the elections in France

By
Ned A. Gray

May 22, 2012

Though the election of a socialist as the French president may appear strange, or even alarming, from an American perspective, we feel Francois Hollande’s election must be viewed in the context of the French political milieu. France’s political elite draws heavily on a very formal, well-established educational tradition and Mr. Hollande is no exception to this pattern. His formal qualifications in terms of expertise in matters of policy and economics suggest his presidency may be more pragmatic than his campaign rhetoric might suggest. Anecdotally, the senior managements of French companies we have spoken with on this topic have confirmed this view.

In the context of policy direction within the euro zone, we believe President-elect Hollande’s influence will likely shift the balance more in favor of a pro-growth direction with some de-emphasis of fiscal austerity. Though the consequences of this policy shift are difficult to anticipate, they may somewhat ease the concerns of a severe recession, perhaps at the cost of extending the ultimate resolution of the euro crisis. Should this scenario come to pass, we believe that it may prove to be supportive to equity prices.

The views expressed represent the Manager's assessment of the market environment as of May 2012, and should not be considered a recommendation to buy, hold, or sell any security, and should not be relied on as research or investment advice. Views are subject to change without notice and may not reflect the manager's current views.

Carefully consider the Funds' investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Funds' prospectuses and their summary prospectuses, which may be obtained by visiting the fund literature page or calling 800 523-1918. Investors should read the prospectus and the summary prospectus carefully before investing.

IMPORTANT RISK CONSIDERATIONS

Investing involves risk, including the possible loss of principal.

International investments entail risks not ordinarily associated with U.S. investments including fluctuation in currency values, differences in accounting principles, or economic or political instability in other nations. Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility and lower trading volume.

The Funds may invest in derivatives, which may involve additional expenses and are subject to risk, including the risk that an underlying security or securities index moves in the opposite direction from what the portfolio manager anticipated. A derivatives transaction depends upon the counterparties’ ability to fulfill their contractual obligations.

Ned A. Gray biography

Ned A. Gray, CFA

Ned Gray manages the Global and International Value Equity strategies and has worked with the investment team for more than 25 years. Prior to joining Delaware Investments in June 2005 in his current position, Gray worked with the team as a portfolio manager at Arborway Capital and Thomas Weisel Partners. At ValueQuest/TA, which he joined in 1987, Gray was a senior investment professional with responsibilities for portfolio management, security analysis, quantitative research, performance analysis, global research, back office/investment information systems integration, trading, and client and consultant relations. Prior to ValueQuest, he was a research analyst at the Center for Competitive Analysis. Gray received his bachelor’s degree in history from Reed College and a master of arts in law and diplomacy, in international economics, business and law from Tufts University’s Fletcher School of Law and Diplomacy.

You can check the background of your investment professional on FINRA's BrokerCheck.

You are now leaving the Delaware Investments website

The link you have selected will take you to a website not controlled by Delaware Investments. Your web browser will automatically redirect you to the site in a few moments. Delaware Investments is not responsible for the content of the website you are about to visit.

Thank you for visiting the Delaware Investments website.

Delaware Investments, a member of Macquarie Group, refers to Delaware Management Holdings, Inc. and its subsidiaries, including the Funds’ investment manager, Delaware Management Company (DMC), and the Funds’ distributor, Delaware Distributors, L.P. Macquarie Group refers to Macquarie Group Limited and its subsidiaries and affiliates worldwide. DMC, a series of Delaware Management Business Trust, is a U.S. registered investment advisor.

Any Macquarie Group entity noted on this page is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia) and that entity's obligations do not represent deposits or other liabilities of Macquarie Bank Limited (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of that entity, unless noted otherwise.

Delaware Investments, a member of Macquarie Group, refers to Delaware Management Holdings, Inc. and its subsidiaries, including the Funds' investment manager, Delaware Management Company (DMC), and the Funds' distributor, Delaware Distributors, L.P. Macquarie Group refers to Macquarie Group Limited and its subsidiaries and affiliates worldwide. DMC, a series of Delaware Management Business Trust, is a U.S. registered investment advisor.